As an important part of the enterprise marketing, dealers play an important role in the sales of products and the operation of the market. However, with the continuous maturity of the Chinese economy and the continuous development of the network society, and the channel flatization strategy that enterprises are eager to follow. Increasingly severe, the entire operating environment of dealers is changing. The ecosystem now operating is being broken by the power of all parties. The traditional dealers are already in a rigorous living environment, and the market competition law of natural selection Let traditional dealers have to face such pains, and must think about how to evolve in the future, so that they can not be abandoned by the manufacturers, not abandoned by the market, not forgotten by customers...
As a long-term marketing planner dealing with dealers and enterprises, I deeply understand the current pains faced by traditional Chinese dealers, and I hope that some of the words about dealer transformation that I have discovered and refined from their markets can be The dealers who struggled in the first line of the market brought inspiration. In fact, no matter how bad the environment is, how fierce the competition is, the road will still be taken out by people. The market is ultimately made by people. Life is not overwhelming, and dealers will not have the trouble.
So what are the difficulties in the face of traditional dealers in the new era? It may be that the dealers in various industries, or the dealers in the same industry, face different difficulties, but in a simple summary, the current dealers are facing the dilemma that is nothing more than three points. Here I simply make an explanation. Do not do the axe-style discussion.
Three realistic dilemmas faced by traditional dealers:
1. The site is getting smaller and smaller, and the company is the edge of the manufacturers: the market is marginalized, segmented, and the core market is lost. It is forced to become a squadron of the manufacturers and become a guerrilla force for the long tail market.
The site is getting smaller and smaller, mainly because the brand market is becoming more and more mature, and the core, prosperous and important regions are constantly being reinstated by the manufacturers for various reasons or divided into other new customers.
The marginalization of the market is mainly due to the rise of terminal stores. It is difficult for traditional dealers to adapt to the management of modern channels, and the stores negotiate directly with manufacturers, so that the market is marginalized by the bustling cities.
The important channels are fully operated by the manufacturers, from the market development of the manufacturers, the dealers' own capabilities and the terminal chain of three-way pressure, resulting in dealers losing a good market, good channels, the market is getting smaller and smaller, the channels are getting worse.
2, the rights are getting smaller and smaller, and become a pure logistics company of manufacturers: earning distribution costs, losing market initiative, the cost of replacing distributors is lower, and they are passively controlled.
The rights are getting smaller and smaller because on the one hand, the market management and operation capabilities of the enterprise marketing center, market center, and sales center are getting stronger and stronger, which leads to the traditional dealers being forced to follow the pace of the enterprise and become one of the enterprise market forces. Small soldier. On the other hand, with the increasingly fierce market competition, traditional dealers are faced with a variety of market risks in the face of modern competitive environment and pressure, such as the amount of funds for modern circulation, management costs, billing periods, etc. After the pressure, it was forced to become a regional pure logistics company of the manufacturer, paying the deposit and deposit to the manufacturer, responsible for handling the goods, providing the transfer warehouse, earning 5%-10% of the distribution fee, and the vehicle personnel themselves You have to bear it yourself, the manufacturers make big money, and they make small money.
Moreover, all actions listen to the command, behave in a proper manner, do not talk about turmoil, and have no right to participate in market management and management meetings of various manufacturers.
3, the profits are getting smaller and smaller, and the manufacturers are sipping the horns: the manufacturers make money like running water, they make money to accompany the water, the market management and operating costs are getting higher and higher, making the operating profit smaller and smaller.
The profits are getting smaller and smaller, and it has been a problem for many dealers. The circulation industry has a saying that the profit of 8 points is guaranteed and 15 points are profiteering. However, in the current market competition environment, with the transparency of market prices, the complexity of market operating costs and the lack of market operation opportunities, dealers not only have less and less operating profits, but also have a chance to make big profits. Spread. Some dealer friends are saying that the gross profit of distribution products is too small, and it is hard to make a business by making a lot of money in one year.
The profit is getting smaller and smaller, because the market is more and more mature, which makes the market competition more and more fierce. It is difficult for dealers to rely on mature brands and products to earn high profits. This is the inevitable result of market development.
In the face of such a dilemma, how do we transform? Let yourself move from passive to active, complete the upgrade of market operations, in order to better adapt to the market competition needs in the new environment, and maintain the longevity of their own industry? Summarizing the current law of market development, individuals believe that traditional distributors must complete three modernization transformations in order to complete the transformation of modernization.
Three modern transformations faced by traditional dealers:
Channelization transformation: from brand distribution to channel operation, channel transformation is to require traditional dealers to operate their own systems, maintain systems, manage systems, and develop their own retail outlets, including self-built terminal networks, proprietary terminal networks and joint terminals. The network, which constitutes its own stable downstream network, is a good market competition. In the past, I only took the first store, stayed in the market, and worked in the wholesale market and terminal. Besides knowing that the customer is there, I basically don't know where the customer is selling the goods.
The channel transformation is aimed at the evolution of the current channel model. With the deepening of channel reform, China's traditional channel model will inevitably shift to the modern channel mode to better meet the needs of economic and social development.